“I will be turning 50 this year and I will definitely be signing up for a mid-life MOT. We’ve been a big supporter of the Cridland Review's proposals for a mid-life review, recently calling on the Government to consider the concept in our response to the Pension Freedoms Inquiry, and we are also preparing the introduction of a similar review for Legal & General staff. However, while the Government’s decision to introduce a ‘mid-life financial MOT’ is to be welcomed, it’s important to remember that there are other factors, such as our health and our careers, that can impact on how we experience later life and we believe it’s important that a mid-life review also considers these factors as well as financial health.
"Pension Freedoms were a big step forward for savers and the industry, but though improved flexibility for consumers has been a good thing, the changes have ultimately put the responsibility for planning retirement income in the hands of the consumer. Not only has that led to claims of some individuals drawing down all their income and splashing the cash, but also concerns that consumers are sleeping walking into drawdown and exposing themselves to unwanted investment risk.
"By getting consumers to take stock of their personal finances at 45 or 50, as well as their health and future career plans, we can encourage people to get thinking ahead about retirement earlier, consider the guidance and advice available to them and help them to make more informed choices about they draw their retirement income."
|
